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Younger generations are less focused on homeownership as the flock to rent in urban centers. Data shows that more and more, upwardly mobile Millenials are choosing to rent and invest in growing their assets in other financial sectors instead, Craig Wood, CEO of real estate development firm Cape Advisors, tells GlobeSt.com.
According to a recent Apartment List Survey, an estimated 12 percent of millennial renters plan to "always rent," which is more than the 10.7 percent who took the survey in the past. The survey data was collected from more than 10,000 millennial renters in the United States.
With talk about a downturn on the horizon, investors remain confident in their multifamily projects that have seen strident demand from Millenials who prefer to live in urban and walkable markets. This trend has been one that Cape Advisors intends to continue to capitalize on with its upcoming New York City projects.
"Having been in business since 1995, we have been through several market cycles and always factor this into our planning process when we launch a new project," Wood said. "The current projects that we have been focusing on – Greenwich West and 30 Warren for example – are both priced well, in-sync with our very unique offerings, and we are seeing the market respond to that."
Cape Advisors is developing a new rental development in Astoria, Queens at 30-77 Vernon Boulevard, one of the largest new rental developments under construction in the submarket that is set to feature a total of 500 apartment units.
"Moving into the rental market in Astoria, which is an already in-demand neighborhood, allows us to bring the Cape Advisors level of development to the growing renter-by-choice population that we hadn't been speaking to before," Wood said.
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
